After piercing the corporate veil, High Court directs to Enforcement Directorate (ED) to proceed against all the Directors/Promoters/Designated promoter/Officer who is in default, companies/other entities in which money from Hacienda Projects Pvt. Ltd. is syphoned or parked – Nirmal Singh Vs. State of U.P. And 4 Others – Allahabad High Court
This is a classic case of conning, as to how the promoters without investing any amount gets huge tracts of prime land allotted, launches a project and collects Rs.636 crores from the home buyers, out of which they again syphon off almost Rs.190 crores (then sell off a portion of land to a 3rd company, pocket and then syphon the entire sale proceeds (Rs.236 crores), and pay a pittance to Noida Authority, towards the cost of land/premium for land and lease rent, which they were supposed to pay, and defrauded the home buyers, Noida Authority, Banks and other creditors. Surprisingly, even after conning everyone they have been going scot free, neither the State nor the authorities are in a position to recover the said amount.
